Legal and General
Legal and General are another household name known for their investment and insurance products. They joined the lifetime mortgage market in 2015 and have quickly grown to be one of the leading lenders.
Legal and General also offers two main types of lifetime mortgage:
‘Flexible Lifetime Mortgages’. These plans have now been given a colour code by L&G, ranging from Black through to Indigo. One example being ‘Flexible Pink’ where the colour refers to the amount you can borrow against the value of your home (the LTV). The higher the LTV available, the higher the interest rate payable.
L&G’s plans are all drawdown schemes which enable you to borrow an initial amount (£10,000 minimum) and the remaining cash facility is there for you to borrow against as and when needed. The ‘Flexible’ range also offers voluntary repayments where you can repay up to 10% of the total amount borrowed each year without penalty.
‘Optional Payment Lifetime Mortgages’. These again adopt the colour code approach and are designed so you can repay some or all of the monthly interest charged, with no proof of income required. L&G allow payments to stop at any time and the plan is useful in managing the future balance of the plan for potential heirs.
‘Income Lifetime Mortgages’. These are also colour coded, where a higher interest rate is payable for higher LTVs. These plans provide a monthly fixed income (from a minimum of £200) for between 10 to 25 years. They also allow for voluntary repayments where you can repay up to 10% of the total amount borrowed each year without penalty.
All of L&G’s plans come with optional inheritance protection. Additionally, some plans have options of paying an application fee and/or taking 2% cashback; both will influence the interest rate charged.
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